House File 2402 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON LABOR

                                       (SUCCESSOR TO HSB 600)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to employers' participation in unemployment
  2    insurance adjudications.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5448HV 82
  5 ak/nh/5

PAG LIN



  1  1    Section 1.  Section 96.3, subsection 7, Code 2007, is
  1  2 amended to read as follows:
  1  3    7.  RECOVERY OF OVERPAYMENT OF BENEFITS.
  1  4    a.  If an individual receives benefits for which the
  1  5 individual is subsequently determined to be ineligible, even
  1  6 though the individual acts in good faith and is not otherwise
  1  7 at fault, the benefits shall be recovered.  The department in
  1  8 its discretion may recover the overpayment of benefits either
  1  9 by having a sum equal to the overpayment deducted from any
  1 10 future benefits payable to the individual or by having the
  1 11 individual pay to the department a sum equal to the
  1 12 overpayment.
  1 13    b.  If the department determines that an overpayment has
  1 14 been made, the charge for the overpayment against the
  1 15 employer's account shall be removed and the account shall be
  1 16 credited with an amount equal to the overpayment from the
  1 17 unemployment compensation trust fund and this credit shall
  1 18 include both contributory and reimbursable employers,
  1 19 notwithstanding section 96.8, subsection 5.  However, provided
  1 20 the benefits were not received as the result of fraud or
  1 21 willful misrepresentation by the individual, benefits shall
  1 22 not be recovered from an individual if the employer did not
  1 23 participate in the initial determination to award benefits
  1 24 pursuant to section 96.6, subsection 2, and an overpayment
  1 25 occurred because of a subsequent reversal on appeal regarding
  1 26 the issue of the individual's separation from employment.  The
  1 27 employer not participating in the initial determination shall
  1 28 be charged with the benefits.
  1 29                           EXPLANATION
  1 30    This bill provides that employers who do not participate in
  1 31 the initial fact=finding determination of eligibility for
  1 32 unemployment insurance benefits but who prevail upon appeal
  1 33 will not recover charges for benefits paid to claimants prior
  1 34 to the decision denying benefits.  The employer that did not
  1 35 participate in the initial determination shall be charged with
  2  1 the benefits.  However, if a claimant used fraud or
  2  2 misrepresentation to secure benefits, the benefits will be
  2  3 recovered.
  2  4 LSB 5448HV 82
  2  5 ak/nh/5